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Highlights
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Woodside acquires Tellurian for $900 million, expanding its LNG portfolio.
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The Driftwood LNG development is now renamed Woodside Louisiana LNG.
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This project positions Woodside for significant growth in the US LNG market.
Woodside Energy has finalized its acquisition of Tellurian Inc., a strategic move that enhances its presence in the liquefied natural gas (LNG) sector. The deal, valued at approximately $900 million in cash—equating to $1.00 per share—adds Tellurian’s US Gulf Coast Driftwood LNG development opportunity to Woodside’s portfolio, which has an implied enterprise value of around $1.2 billion.
Following the acquisition, Woodside has renamed the Driftwood LNG development to Woodside Louisiana LNG. This under-construction project is located in Calcasieu Parish, Louisiana, and is positioned as a high-quality, scalable LNG production and export terminal. With a total permitted capacity of 27.6 million tonnes per annum, the Woodside Louisiana LNG project represents a significant opportunity in the burgeoning US LNG market.
Meg O’Neill, CEO of Woodside, emphasized the strategic importance of this acquisition during a recent announcement. “Bringing Woodside Louisiana LNG into the global portfolio represents a significant new chapter for the company. This is a major growth opportunity that significantly expands our US LNG position,” she stated. O’Neill added that the acquisition enables Woodside to better serve global customers and capitalize on marketing optimization opportunities across both the Atlantic and Pacific Basins.
Woodside's expertise in project execution, operations, and marketing positions it well to unlock the full potential of the Louisiana LNG project. The company has expressed confidence in the development, noting that it is fully permitted, has completed front-end engineering design, and has advanced civil works on site.
The company aims to achieve readiness for a final investment decision (FID) by the first quarter of 2025. The experienced team from Tellurian, along with engineering, procurement, and construction contractor Bechtel, has made substantial progress to advance the project to its current stage. “We are also pleased with the inbounds received from multiple parties looking to enter the opportunity as a strategic partner,” O’Neill noted, highlighting the growing interest in the project.
The acquisition of Tellurian is part of Woodside's broader strategy to strengthen its LNG portfolio and enhance its operational capabilities in the US market. As global demand for cleaner energy sources continues to rise, Woodside aims to leverage its new assets to meet the needs of customers seeking reliable and sustainable energy solutions.
With the completion of this acquisition, Woodside is not only positioning itself as a key player in the US LNG market but is also reinforcing its commitment to growth and innovation in the energy sector. The Woodside Louisiana LNG project is poised to play a crucial role in the company’s efforts to capture market share and drive long-term value for shareholders.
